Indonesia to impose VAT on streaming, digital services from July

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Products and services bought via Google Play would also fall into the taxation category. FMTNews

JAKARTA: Indonesia will require big internet companies to pay value-added taxes on sales of digital products and services from July as part of efforts to boost revenue amid the coronavirus pandemic, a tax official said on Friday.

The government has previously said services by streaming platforms like Spotify and Netflix would be subject to the new tax. Neither company responded to requests for comment. Finance Minister Sri Mulyani Indrawati has said that imposing VAT on internet goods was to make sure the government captures the shift in people’s consumption patterns as they stay at home during a lockdown to curb the spread of the virus.

 

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